Thursday 3 December, 2020

Motorists to be refunded Road Tax payments

(File Photo)

(File Photo)

The repeal of the Road Tax by the Mottley-administration, though welcomed, has brought with it some headache for motorists whose payments were due shortly before the new law came into effect on July 1.  

In light of this, Prime Minister Mia Mottley made the announcement last night during a press conference that motorists who paid Road Tax between June 12 and June 30 will be receiving partial refunds on monies paid.  

Mottley sought to clear up any misunderstanding from comments the Transport Minister, William Duguid made in an earlier press conference that the non-payment of road tax due before July 1 would be running afoul of the law and motorists should "put down" their vehicles.  

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PM Mottley explained that motorists who paid the tax between the above-mentioned dates should write a letter to the Ministry of Finance requesting a refund.   

"Write the letter. We can check and see when your time came up at BRA [Barbados Revenue Authority] and once that is verified the government will give you back 75 per cent of what you paid and the government will retain 25 per cent as an administrative fee." 

With commercial vehicles, Mottley said, because there is a registration fee, instead of a refund, monies paid on this category of vehicle will be applied to next year's fee so they no longer owe any outstanding balance. 

She added the amount owed on commercial vehicles is not a substantial amount, totalling approximately $300,000.

The Road Tax will be replaced by Fuel Tax applied at the pump at a rate of 40 cent per liter on petrol, 40 cent per liter on diesel and 5 cent per liter on kerosene.


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